Subject to FCA approval, the deal will provide LGT with what it sees as “a significant foothold in the important British market”.
Vestra’s executive partners will continue to hold their minority stakes in the company. The financial terms have not been revealed.
The company will be renamed LGT Vestra and will remain a partnership between LGT and the original partners. David Scott will be chairman of the management board and Ben Snee the chief executive. Thomas Piske, chief executive of LGT Private Banking, will chair the entity’s governing board.
London-based Vestra Wealth has £5.6bn ($8.1bn, €7.2bn) in managed assets. It has 234 staff and offices in London, Bristol and Jersey, providing investment management and wealth planning services to UK high-net-worth and ultra-high-net-worth clients.
LGT is the largest private banking and asset management group in the world wholly owned by a single family. At 31 December 2015, LGT had CHF132.2bn (£93.5bn) in assets under management.
"LGT’s purchase of a majority stake also allows some of our initial investors to be rewarded for the risk they took and their belief in our success when we started the business."
LGT has been expanding its private banking franchise over the last 15 years, moving into the Singapore, Hong Kong, Dubai and Austria markets, while also expanding in Switzerland.
Decision to partner
“We are proud to have LGT as our main investor partner,” said Scott. “The group and its owner, one of the most long-standing families in Europe, share our philosophy and can support us in enhancing and strengthening our offering to clients.
“The family’s long-term approach was a key aspect in our decision to partner with the group, as it means we can focus on building sustainable success, as well as enhancing the opportunities for our loyal staff. LGT’s purchase of a majority stake also allows some of our initial investors to be rewarded for the risk they took and their belief in our success when we started the business.”
LGT chief executive, H.S.H. Prince Max von und zu Liechtenstein, said: “With Vestra Wealth, we have found an excellent organisation and private banking platform that we can continue to grow in the years to come. We warmly welcome the Vestra Wealth partners and team to the LGT family.
“While our focus is on continuity for Vestra Wealth’s clients, we will cooperate in areas where Vestra can benefit from LGT’s long-standing investment expertise. For LGT, Vestra Wealth is an excellent strategic and cultural fit, and this move marks a further step in the expansion of our long-term oriented international growth strategy.”